During this webcast we'll explore how supply chain execution convergence (SCEC) helps break down the barriers resulting from disparate, fragmented technology solutions allowing you to more effectively serve customers, adapt to changing business cycles, and save both money and resources.

Time to look at Intra-Americas trade again

By Patrick Burnson, Executive Editor
May 13, 2014 - LM Editorial

With so much attention now being placed on trade agreements with the EU and in the transpacific, shippers may wish to take a fresh look at what one leading ocean cargo carrier is doing within the parameters of the existing North America Free Trade Agreement (NAFTA).

Starting early next year, the resurrected U.S. carrier, SeaLand, will be coming back under the auspices of Maersk Line to serve existing Intra-Americas service network. This will also shift the logistics weight to the Caribbean Basin in anticipation of the Panama Canal expansion. SeaLand was aquired by Maersk Line in October 1999.

“This reorganization is an investment in our global container business. It enhances and strengthens service in this important and growing trade region, as well as the future of our overall global service network,” says Vincent Clerc, chief trade & marketing officer, Maersk Line.

Analysts say that the Caribbean Basin Partnership Act – which was broadened more than a decade ago – may eventually be replaced by a “Free Trade Area of the Americas” act.

Russell Held, Director of Economic Development for The Port of Virginia, and a former SeaLand executive, says the trend for near-shoring is gaining traction – with a great focus on ocean carrier reliability.”

Indeed, Maersk Line’s existing Intra-Americas service network will be the foundation for SeaLand. Industry analysts contend that the new U.S. subsidiary will have similar structure to Maersk Line’s other regional carriers – including intra-Asia carrier MCC Transport and intra-European carrier Seago Line.

SeaLand will feature local sales and support personnel located in North, Central, and South America, as well as the Caribbean, to service customers throughout the region.

The new, independent unit will officially start operating next January. Meanwhile, Maersk will begin the transition of its Intra-Americas business to SeaLand in a phased approach throughout the remainder of this year.

About the Author

Patrick BurnsonExecutive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!

Get timely insider information that you can use to better manage yourentire logistics operation.

Recent Entries

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

A new Government Accountability Office report on the effects of changes to truck driver hours of service rules has sparked a war of words between the American Trucking Associations and Federal Motor Carrier Safety Administration, the arm of the Transportation Department that is in charge of making those rules.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in May dropped 10.8 percent annually to $92.7 billion, following a 6.8 percent annual decline to $93.3 billion in April.

Rumors of transportation and logistics titan UPS acquiring Chicago-based transportation management services provider Coyote Logistics for $1.8 billion have become a reality, with UPS announcing today that the deal is now official.